Empire Oil Offered New Permit in Onshore North Perth Basin

Empire Oil & Gas has been offered 100% of a new oil prospective exploration permit in the onshore North Perth Basin, Western Australia. The new permit demonstrates the Company's commitment to the Basin and also provides additional opportunities for its USA based farminee company, Perth Basin Oil & Gas LLC.

Application Area 4/04-5 (previously called L04-4) is located on the northern part of the Dandaragan Trough in the North Perth Basin, onshore Western Australia. It consists of 13 graticular blocks covering an area of approximately 1,000 sq. kilometers.

The main reservoir objectives in the area are the fluvial sandstones of the Cattamarra Coal Measures sealed intra-formationally by thick lacustrine shales within the Cattamarra Coal Measures. These have porosities of 18-30% in Donkey Creek-1 (1966) and Eneabba-1 (1961) with core derived permeabilities of 1200-2900 millidarcies in Eneabba-1.

Source is provided by the coaly and carbonaceous shales of the Cattamarra Coal Measures. In Donkey Creek-1, the organic content in these source rocks is very high and they are capable of generating both oil and gas. These source rocks are also interpreted to be in the peak oil generation window in Application Area 4/04-5.

Eneabba-1 had numerous gas and oil shows with strong flows of wet gas in fracture zones of the Kockatea Shale. The well did not test a valid trap. Donkey Creek-1 also did not test a valid structure with gas shows and hydrocarbon fluorescence encountered. These early wells demonstrate the oil prospectivity of the permit area where seismic reprocessing and new seismic will delineate new valid structures.

The leads in Application Area 4/04-5 are Jurassic rollovers, similar in style to the Moriary Prospect in the Company's EP 426 Permit. The Moriary Prospect is mapped as a simple anticline similar in style to the Mount Horner Oilfield. The Moriary potential recoverable oil reserves of 2 sands in the Cattamarra Coal Measures are in the order of 5 million barrels (MMBO) in the "J" sands with the "L" sands having similar potential by a further 5 MMBO. Empire intends to drill the Moriary Prospect early 2005.

The new permit extends this Mount Horner style play with similar objectives further south. Upon the permit being granted, it is proposed to reprocess and reinterpret the existing seismic and acquire new seismic over several leads to mature them to drillable status.

The permit will be granted upon Empire reaching agreement with the native title parties with claims over the area. The Company has a good working relationship with these parties who have previously reached agreement with the Company concerning other Perth Basin permits.


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